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D & O's liability process against the Chubb unit may continue



A federal district judge in Chicago has refused to dismiss a lawsuit against a Chubb Ltd. entity in a dispute over coverage of a conference covid-19-related cancellation.

Chicago-based health care information. and Management Systems Society Inc. canceled its global conference in Orlando in March 2020 due to the pandemic, according to the October 19 ruling of the U.S. District Court in Chicago of the Federal Insurance Company et al v. Healthcare Information and Management Systems Society, Inc. The decision was reported by The D&O Diary . In June 2020, an exhibitor filed a lawsuit against HIMSS in the Illinois state court seeking compensation for its fees and damages, and a week later, another exhibitor filed a class action lawsuit against the organization, alleging that it had violated its agreements by refuse to reimburse the fees paid. The dispute was merged and settled on an undisclosed amount.

After the Chubb unit Federal Insurance denied coverage, the insurer brought an action and requested a declaration that it had no obligation to defend or indemnify the organization, which filed a counterclaim in the case. [1

9659002] The coverage had two "probably applicable" exceptions, the ruling said, an exclusion of professional services and an exclusion of contracts.

"The Court concludes that the plaintiff has failed to bear its burden of establishing with absolute clarity that the exclusion of professional services applies," the judgment said, adding that the exclusion of the contract "under its own terms does not deny the plaintiff's obligation to defend the defendant in the underlying cases"

The court agreed to reject HIMSS & # 39; bad faith claims.

Actors in the case did not respond to requests for comment.

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